Hi Dale! Did some more tinkering today. I agree that other pairs besides the EUR/USD should be examined, but my understanding is that all pair movements are fractal in nature. Assuming market efficiency hypothesis is valid, it shouldn’t matter which pair you trade. The extra bucks that could be made in a more-volatile exotic pair like the AUD/JPY will be eaten by higher spread. If there was indeed an edge to be found, I think arbitrage trading will ensure that edge gets eliminated. Perhaps my thinking is wrong, though.
Anyway, performed two more backtests for the months of Oct and Nov 2010 on the M30 TF with TP=0.5SL and TP=0.33SL. In October TP=0.5SL performed slightly better than TP=0.33SL (349 pips vs 336 pips), and in November, TP=0.5SL ended up with a nominal profit of 568 pips versus 426 pips for TP=0.33SL.
TP=0.5SL performed better than 0.33SL for both months and it wasn’t what I predicted. I think at this point I’ll begin to clean up my results and tabulate them for people to see. After testing nine months worth of M30 data, however, I have little doubt that this system is profitable, at least where TP=0.5SL.